How to Become an Insurance Underwriter
While there is not a typical education that is required of an insurance underwriter, the majority of companies hiring underwriters will look for those that have both the education and professional title. The majority of the individuals who are insurance underwriters often started their career with on-the-job training.
An occupation as an insurance underwriter will require one to calculate the risks when insuring a person, business, or object. Their job is to protect the insured from a large financial loss. In fact, there will be many instances when an organization will actually insure an individual if they play an important role in the business. For example, a movie production could insure the lead actor of the movie.
The underwriter, by looking at different factors, such as car accidents, illnesses, and property damage, will determine just how much risk is involved with the policyholder. At this point, they may also calculate the accurate premium for the coverage and write the policy, taking into account all of the risks involved.
Work done by the insurance underwriter is crucial. If the risks are not calculated correctly, the company could not just lose customers to their competitors; they could actually end up with claims that could cost those thousands of dollars. As this reveals, the job can be very complex.
While an underwriter needs to have extensive computer skills, most of the software programs will actually do the majority of the work for them. All of the information they receive in their research will be entered into the program and report will be issued that the underwriter will use to determine if a policy should be issued or not.
Most of the larger companies do prefer hiring underwriters that have a college degree and will look to those who have concentrated their courses in business administration and financial matters. As stated earlier, most will provide on-the-job training for their new underwriters, but anyone interested in this career will want to make sure they have a well-rounded education in business, finance, and law.
Insurance Underwriter Salary
According to the U.S. Department of Labor, the average income for an insurance underwriter in 2010 was $65,220. The amount, however, will depend on the state you live in, as well as the size of the company that employs you. The wage you earn will also depend on your experience level, education, and college education.
As the need for insurance underwriters continues to rise, the job outlook is high for anyone interested in the industry. To prepare yourself for a career in this field, it is optimal to invest in your education and learn as much as you can about the field before you start applying for open positions.